₦airaland Forum

Ikengawo:
90% of the people that read this article don't know that even to start a small business a man needs to go into debt.

very nice sounding lie

Kai wombiliki wobia ole ni jonathan yi o,thank God we drive am out,he for kill Nigeria patapata porogodo

Eruditor:
It is a lie. When Oil prices go high, countries save so that when they go low they would have reserves to help augment revenues. Saudi Arabia and Norway both have more than 800B $ stored in their FR. Algeria has over 100B $. But Nigeria under GEJ has just 29.9B $.

That is the problem.

1. Saudi Arabia has 11 million people. Norway has 11 million people. Algeria has 37 million people.

2.Norway has a very strong industrial sector...which also earns them extra cash.

3.Saudi and Norway are the No 1 AND No2 oil producers. Nigeria is number 8.

4.Nigeria has 170 million people and no strong industrial sector....especially heavy industry.(Norway has that well well.)



Even if we saved all the money...and fight corruption....we STILL won't have enough cash. That is why Nigeria must industrialize. Our resources are not enough to sustain us.

dekdek:

There is nothing wrong with debts perse especially if it's put in good use. It's quite evident even to the biggest critic what is being done in lagos even with the debt. Can we say the same about this cursed govt. Infact these fools even borrow money to pay salaries. Does lagos do that also? Please it's incomparable.

pls ignore that guy jo

bebe2:
I have a small business.

And I have no debt

Don't mind that tadpole. He's high on dung shiit. I have a business and no debt rather people are owning me. Damn! Some saTANoids are just unbelievably terrible

Ikengawo:
90% of the people that read this article don't know that even to start a small business a man needs to go into debt.

kai bros you can lie

Ikengawo:
90% of the people that read this article don't know that even to start a small business a man needs to go into debt.

What are you trying to justify here?

You can't be serious. If you are, you need a complete over-haul of
your entire body.

Not only b***n surgery.

What is lagos and ogun owing. Well following tinubu economic solution 5tr is too small. I guess buhari would quadruple that amount once he gets into office let's face it. Tinubu economic plan as stated in his article is for govt not to peg its expenditure on it income. And if these are buhari's economic advisers, nigerians should expect that figure to quadruple.

The debt is not a problem. It's use or lack of use is the wahala.

omenka:
What exactly can one commend this administration for??

Corruption and reckless spending...

bushdoc9919:
All good ideas....that will lead to the removal of the government.

Because unfortunately due to our oil dependent economy., we do not have a vibrant private sector that would have absorbed all them sacked staff.

(Yes JJ Rawlings did it in the 1980's in Ghana...and people suffered. But the economy improved!).

As for removing the subsidy....it is a good idea....but sadly most Nigerians only see the price at the pump....not the long term savings that would have been made.

Your ideas are good......but this is Nigeria.Good does not work here at all.

The partial removal, what have they done with it?

Where are the public transport buses?
Where are the refineries?

Even the refineries we have, why have they not been fixed?

If you can't answer those questions, don't talk about subsidy removal.

The next president will still borrow n borrow n borrow...

Such is life in a country where population keeps growing n revenue generated is relatively stagnant

grandstar:
If the government had slashed the labour force and removed the subsidy after the increase of in the minimum wage to 18,000, government freed as much as 1.8trillion.

The lack of political will to cut the size of the civil service and remove the subsidy is the cause of the problem.

Will Buhari be bold to do the needful?

The elephant in the room.
The drain of an inefficient civil service rivals corruption as the twin evils dragging this nation back.

omonnakoda:
Foreign reserves are not savings ,They do not belong to the government . They belong to every person who has a naira note in their pocket or account and that is why you expect to be able to exchange those naira notes for those dollars

LOL. We benchmarked crude at less than 50$ per barrel and sold it for more than 115$ for more than 2 years. The Excess of more than 64$ per barrel should have been SAVED. Or was it? And what happened to that savings?

temitemi1:
GEJ my HERO! FAYOSE my ROLE MODEL!!

shameless....

Nigeria’s Buhari May Succumb to Eurobond Lure as Yields Plummet

A rally that drove yields on Nigerian Eurobonds to six-month lows has created an opportunity for President-elect Muhammadu Buhari to tap international markets soon after he is sworn in on May 29.
Rates on Nigeria’s $500 million of securities due July 2023 fell to 5.45 percent this month, the lowest since Nov. 4. Yields have dropped by more than 300 basis points since reaching a record high of 7.83 percent on Feb. 11. Nigerian dollar debt has returned 7 percent this year, compared with the 2.8 percent average for peers in Africa and the Middle East, according to data compiled by Bloomberg.
While incumbent President Goodluck Jonathan’s administration mostly issued local-currency bonds, a budget deficit that’s widening as low oil prices starve Africa’s biggest crude producer of cash means new sources of funding may be needed. Lower dollar yields make Eurobonds more enticing than naira debt, according to Yvonne Mhango, an economist at Renaissance Capital. The West African nation has sold Eurobonds twice, most recently in July 2013.
“Nigeria will have to pursue the external financing option more so than they’ve done previously,” Mhango said by phone from Johannesburg on May 14. “That’s because the financing gap will be much bigger than before. Also, yields have come in nicely. That’s an opportunity for them to go that route.”
Clamp-Down
Former military ruler Buhari, 72, defeated 57-year-old Jonathan in a March 28-29 vote. He pledged to clamp down on corruption and defeat Boko Haram’s Islamist insurgency in the north east when he takes over, which will mark Nigeria’s first democratic transition from one party to another.
Whether Nigeria’s debt rally continues will depend on crude prices and Buhari’s success in carrying out his pledges, including a vow to boost transparency and production in the oil industry, according to Brett Rowley, a managing director at Los Angeles-based TCW Group Inc.
“Investors hope he will make good on campaign promises to crack down on corruption and implement structural reform, particularly in the oil sector,” Rowley, who helps oversee $160 billion of assets including Nigerian Eurobonds, said by phone on May 15.
Low Debt
Nigeria would benefit from its low debt levels if it did tap international capital markets, according to Razia Khan, head of Africa economic research at Standard Chartered Plc. The ratio of debt to gross domestic product is 10.7 percent, according to Barclays. That compares with 67 percent for Ghana and 44 percent for South Africa. Foreign debt amounts to 1.7 percent of GDP, compared with 9 percent for naira-denominated borrowings, according to Barclays Plc.
“Anyone looking at Nigeria’s situation would say there’s a case for external borrowing,” Khan told reporters in Lagos, the nation’s biggest city, on May 5.
Paul Nwabuikwu, a spokesman for the finance ministry in Abuja, and Garba Shehu, a media aide for Buhari also based in the capital, didn’t immediately respond to e-mailed requests for comment.
Average yields on naira-denominated bonds dropped to 13.9 percent on May 14 from more than 16 percent in mid-March, just before the election. They are still the highest among 31 emerging markets tracked by Bloomberg. Yields on the nation’s 2023 Eurobonds climbed 5 basis points to 5.70 percent by 8:13 a.m. in Lagos.
‘Cash Crunch’
Nigeria’s government, which derives 70 percent of its revenue from oil exports, has a “cash-flow crunch” and has already borrowed more than half the amount it budgeted for the full year, Finance Minister Ngozi Okonjo-Iweala said on May 5. While spending will fall this year by 18 percent compared with 2013, the government still needs an oil price of $88 a barrel to balance its budget, Deutsche Bank AG analysts said in an e-mailed report on May 14. Brent crude fell 0.1 percent to $66.66 a barrel on May 15.
“They would pay less on a Eurobond than tapping the local market,” TCW’s Rowley said. “It would certainly be tempting for them, particularly in this lower oil-price environment. The government could use the cash.

http://www.bloomberg.com/news/nigeria-s-buhari-may-succumb-to-eurobond-lure-as-yields-plummet

blym4real:
The partial removal, what have they done with it?

Where are the public transport buses?
Where are the refineries?

Even the refineries we have, why have they not been fixed?

If you can't answer those questions, don't talk about subsidy removal.

Well all good questions (and if you think I am a govt agent excusing corruption, you have the wrong idea.).

The reason why fuel subsidy has to go is that oil price is below $65.

When it was above $100...we could manage to do subsidy.....but now we can't.

So..either oil prices go up at the pump via subsidy removal....or you may have to give up other things to pay for the subsidy.

And yes...your govt loots. Because we Nigerians tolerate them. Up till now there are people who defend N250million for four bullet proof cars....and anyone who says it is wrong is called a Hausa slave.

Ultimately...we have to industrialize. So that we can have the GDP to subsidize everything. And Nigerians need to remember that democracy does not end on election day.

Eruditor:
LOL. We benchmarked crude at less than 50$ per barrel and sold it for more than 115$ for more than 2 years. The Excess of more than 64$ per barrel should have been SAVED. Or was it? And what happened to that savings?

That would be Excess crude account if it is still there,those are government funds. Not the same as Foreign reserves

Thank God,
It was just a domestic debt,
And not international

We don't even have power supply. Even my area in ife modakeke Akarabata area has not had light for 5 months.

bushdoc9919:
1. Saudi Arabia has 11 million people. Norway has 11 million people. Algeria has 37 million people.

2.Norway has a very strong industrial sector...which also earns them extra cash.

3.Saudi and Norway are the No 1 AND No2 oil producers. Nigeria is number 8.

4.Nigeria has 170 million people and no strong industrial sector....especially heavy industry.(Norway has that well well.)



Even if we saved all the money...and fight corruption....we STILL won't have enough cash. That is why Nigeria must industrialize. Our resources are not enough to sustain us.

1. Nigeria sells crude at a price premium to Brent and Oman-Dubai. In other words our crude is more expensive.

2. Nigeria produces more crude than Algeria.

3. If Saudi and Norway can have FR to the tune of such valuations then Nigeria should have something way beyond 29.9B $. OBJ, left it at 62B $ before leaving even though he sold crude at less than half the price during GEJs time.

There's no excuse for the recklessness of GEJs government. C'est fini.

O Jonah, why?

The take home message is Ngozi Okonjo-Iweala is an over-hyped failure

omonnakoda:
That would be Excess crude account if it is still there,those are government funds. Not the same as Foreign reserves

I know what it is called. I asked you what became of it. What is it with these GEJ apologists and their diversionary tactics?

Eruditor:
I know what it is called. I asked you what became of it. What is it with these GEJ apologists and their diversionary tactics?

Me?

omonnakoda:
Me?

No vex. Saw a subsequent post and figured you were not a Tanoid.

Eruditor:
No vex. Saw a subsequent post and figured you were not a Tanoid.

Check yourself abeg

Bro G come rest abeg. make them go pay the debt, Na them cause wetin bring the debt.

.

huge debt await buhari